The Primary Goal of a Publicly-Owned Firm Interested in Serving

question 37

Multiple Choice

The primary goal of a publicly-owned firm interested in serving its stockholders should be to _____. 

• A)minimize the debt used by a firm
• B)maximize expected earnings per share (EPS)
• C)minimize the chances of losses
• D)maximize the stock price per share
• E)maximize expected net income

---

Definitions:

Catastrophic

describes an event causing sudden and extensive damage or suffering; often unforeseeable and with significant impact.

Reliability

The degree to which a system, component, or process consistently performs its intended function under specified conditions over time.

Function Properly

To function properly means to operate or perform as intended or expected, usually referring to machines, systems, or organs within living organisms.

System Reliability

The measure of a system's ability to perform its required functions under stated conditions for a specified period of time.